Reuters reported that seven energy firms including Dubai based Dragon Oil and Kuwait Energy is likely to compete with Exxon Mobil Corporation for the right to explore oil and gas blocks in northern Afghanistan.
The country's Mining Ministry said that India's ONGC Videsh, Brazil's Petra Energia, Pakistan Petroleum, Thailand's PTT and Turkey's TPAO are the others in the fray.
Afghanistan is seeking bidders for the exploration, development and production of oil and gas in six blocks in the western portion of the Afghan and Tajik Basin in the country's north which the Ministry estimates contains several hundred million barrels of oil equivalent. It has set an October deadline for the bidding.
Thirty years of war have prevented exploration of Afghanistan's energy and mineral resources of which very little is known. The Soviet Union, vying for influence in the region in the lead-up to its 1979 invasion, conducted primary research.
Ordinary Afghans and officials alike have said that global interest in their natural resources which the Economy Ministry said could produce USD 12 billion annually in government revenue, could help the country achieve stability after most foreign troops leave in 2014.
Widespread graft, a weak rule of law and poor governance pose potential headaches for foreign investors and energy companies looking to explore in Afghanistan. Interest from oil majors such as Exxon Mobil is a good sign however.
Brigadier General Ricky Waddell head of Nato's anti corruption task force in Afghanistan said that “Exxon is so big and they're in so many countries that they can afford to say no. So they don't appear unless they think they can make it work.”
The Mining Ministry has said that it expects the tender process for the blocks in the Afghan and Tajik Basin to be completed by early next year when the contracts will be awarded.
Afghanistan signed a deal late last year with China National Petroleum Corporation for the development of oil blocks in the Amu Darya basin, also in the north. But highlighting the difficulties of exploration in Afghanistan that project has met fierce resistance from militia loyal to former warlord and army chief of staff General Abdul Rashid Dostum.
Government officials said Mr Dostum demanded a share of the proceeds and sent armed men to intimidate the Chinese engineers on the ground a claims that Mr Dostum denied.
Source - Reuters
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